Accounting Questions
Accounting Questions California State University Northridge Accounting 475 Spring 2022 Homework 1 Question 4
4. The measurement focus of governmental-type funds is on the determination of:
Current Financial Resources Financial Position
A. Yes No.
b. No Yes.
c. No. No.
d. Yes Yes.
Answer
D. Yes Yes.
Explanation.
Measurement focus for a governmental fund contemplates measurement of the flow of current financial resources and resulting financial position. A fund’s measurement focus identifies what transactions should be recorded and how they should be reported. For governmental funds, the statement of revenues and expenditures should report resources received and consumed during the current period (current financial resources focus). The balance sheet shows available resources and current obligations (financial position focus).